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11/25/2024 11:42:23 AM
Luke Greiner, Amanda O'Connell
With nearly 14,750 jobs at more than 1,100 establishments in the second quarter of 2024, the Leisure & Hospitality industry helps make people feel at home in Southwest Minnesota. With 8.4% of total employment, one in every 12 jobs in the region is in Leisure & Hospitality. However, that is the lowest share of the six regions in the state, and 1.5% lower than the state as a whole. Despite the lower concentration, after adding 527 jobs over the past year, Southwest Minnesota saw the fastest employment gain in Leisure & Hospitality in the state, well ahead of the other five regions (see Figure 1).
With 880 firms providing more than 12,500 jobs, Accommodation & Food Services is the largest sector within Leisure & Hospitality after gaining nearly 450 jobs over the past year. At a more detailed level, 11,680 of those jobs are at Food Services & Drinking Places. More specifically, just under 10,000 of those jobs are in Restaurants, split almost evenly between Full-Service and Limited-Service Restaurants, which includes Fast Food.
Rising demand from customers continued to boost employment levels at Food Services & Drinking Places, with Restaurants adding 425 jobs over the year, Special Food Services–which includes cafeteria food service contractors for hospitals, colleges and universities, and government–gaining 134 jobs, and Drinking Places embracing 86 more jobs. In contrast, Accommodation cut 196 jobs over the year, as demand for hotel stays declined in the region (see Table 1).
Table 1. Leisure & Hospitality Employment in Southwest Minnesota |
Qtr. 2 2024 |
Q2 2023 – Q2 2024 Change in Jobs |
|||
---|---|---|---|---|---|
NAICS Code | NAICS Industry Title | Number of Firms | Number of Jobs | Numeric | Percent |
Total, All Industries | 13,015 | 174,345 | -313 | -0.2% | |
Leisure & Hospitality | 1,116 | 14,728 | +527 | +3.7% | |
71 | Arts, Entertainment, & Recreation | 236 | 2,200 | +78 | +3.7% |
711 | Performing Arts, Spectator Sports, & Related Industries | 46 | 205 | +5 | +2.5% |
712 | Museums, Historical Sites, & Similar Institution | 37 | 157 | +3 | +1.9% |
713 | Amusement, Gambling, & Recreation Industries | 153 | 1,837 | +70 | +4.0% |
71321 | Casinos (except Casino Hotels) | 1 | 269 | -5 | -1.8% |
7139 | Other Amusement & Recreation Industries | 146 | 1,534 | +78 | +5.4% |
71391 | Golf Courses & Country Clubs | 48 | 781 | +44 | +6.0% |
71394 | Fitness & Recreational Sports Centers | 40 | 317 | +16 | +5.3% |
71395 | Bowling Centers | 16 | 184 | +20 | +12.2% |
71399 | All Other Amusement & Recreation Industries | 38 | 237 | -6 | -2.5% |
72 | Accommodation & Food Services | 880 | 12,528 | +449 | +3.7% |
721 | Accommodation | 85 | 848 | -196 | -18.8% |
7211 | Traveler Accommodation | 73 | 772 | -187 | -19.5% |
7212 | RV (Recreational Vehicle) Parks & Recreational Camps | 9 | 59 | -1 | -1.7% |
722 | Food Services & Drinking Places | 795 | 11,680 | +645 | +5.8% |
7223 | Special Food Services | 47 | 649 | +134 | +26.0% |
7224 | Drinking Places (Alcoholic Beverages) | 153 | 1,099 | +86 | +8.5% |
7225 | Restaurants | 595 | 9,931 | +425 | +4.5% |
722511 | Full-Service Restaurants | 289 | 4,427 | +222 | +5.3% |
722513 | Limited-Service Restaurants | 254 | 4,921 | +137 | +2.9% |
722514 | Cafeterias, Grill Buffets, & Buffets | 3 | 44 | -2 | -4.3% |
722515 | Snack & Nonalcoholic Beverage Bars | 49 | 538 | +68 | +14.5% |
Source: DEED Quarterly Census of Employment & Wages |
With more than 1,100 job openings in 2023 and high turnover, the Leisure & Hospitality industry is very welcoming to new workers. Though wages are typically lower in these jobs, so are the requirements for entry, with most jobs available to anyone regardless of educational attainment. The vast majority of jobs can be started with a high school diploma or less, and typically require just short-term on-the-job training, making it easy for jobseekers to get placed. They also tend to offer flexible hours and part-time schedules, which many workers may prefer. Some examples of jobs in highest demand in Leisure & Hospitality include:
For more information on Leisure & Hospitality employment in Southwest Minnesota, contact Luke Greiner at luke.greiner@state.mn.us or Amanda O'Connell at amanda.oconnell@state.mn.us.